Yahoo Finance Analyst Recommends Nvidia as Top AI Stock to Buy, Citing Undervaluation and Expected 70% Revenue Growth by FY2028
The analyst highlights that Nvidia (NASDAQ: NVDA) currently trades at 24 times forward earnings, which is considered inexpensive given the company's forecast of 70% revenue growth for its fiscal year 2028, ending in January 2028. This valuation is comparable to the S&P 500's trailing P/E ratio of 24.8 times, despite Nvidia's significantly higher growth projections. The analysis suggests the market is not fully crediting Nvidia for its future growth, with demand for its GPUs still outstripping supply and major AI hyperscalers projected to spend $1.3 trillion on data center capital expenditures next year.
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